The Impact of Globalization on CO2 Emissions in China

Muhammad Shahbaz, Saleheen Khan, Amjad Ali and Mita Bhattacharya

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the Environmental Kuznets Curve (EKC) hypothesis for China in the presence of globalization. We have applied Bayer and Hanck combined cointegration test as well as the ARDL bounds testing approach to cointegration by accommodating structural breaks in the series. The causal relationship among the variables is investigated by applying the VECM causality framework. The study covers the period of 1970-2012. The results confirm the presence of cointegration among the variables. Furthermore, the EKC hypothesis is valid in China both in short-and-long runs. Coal consumption increases CO2 emissions significantly. The overall index and sub-indices of globalization indicate that globalization in China is decreasing CO2 emissions. The causality results reveal that economic growth causes CO2 emissions confirming the existence of the EKC hypothesis. The feedback effect exists between coal consumption and CO2 emissions. CO2 emissions Granger causes globalization (social, economic and political).

Keywords: China; Coal Consumption; Globalization; CO2 emissions (search for similar items in EconPapers)
JEL-codes: A1 A10 (search for similar items in EconPapers)
Date: 2015-01-01, Revised 2015-05-15
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Journal Article: THE IMPACT OF GLOBALIZATION ON CO2 EMISSIONS IN CHINA (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:64450

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